Resurgence of FPI Investments: A Glimmer of Hope Amid Border Tensions

Foreign Portfolio Investors have returned with vigor, injecting over Rs 10,000 crore into Indian equities, marking a positive shift in investment trends despite prevailing geopolitical tensions. April witnessed the first net positive FPI inflows of 2025. Yet, border issues temper investor enthusiasm, underscoring a cautious market outlook.

In a promising twist for the Indian stock markets, Foreign Portfolio Investors (FPIs) have injected more than Rs 10,000 crore this week, signaling a renewed overseas interest in domestic equities. Data from the National Securities Depository Limited (NSDL) recorded FPI inflows amounting to Rs 10,073 crore between April 28 and May 2.

This data highlights a crucial turnaround because April 2025 marks the first month of net positive FPI inflows in the year. While inflows amounted to Rs 4,223 crore in April, previous months had witnessed sell-offs, with FPIs offloading Rs 3,973 crore in March and even larger figures in January and February.

Despite these positive indicators, the overall market sentiment remains muted, heavily influenced by tensions at the India-Pakistan border. This geopolitical strain has resulted in a cautious market, with many investors adopting a wait-and-see approach. Volatility persists with market indices showing erratic movements, reflecting the complex interplay of renewed FPI interest and regional uncertainties.

(With inputs from agencies.)